Focus strategy is when the company gains highest market share from targeting narrow segments of the market. The company does this by either doing it through cost leverage or differentiation based on the products features.
Palm Inc uses focusing strategy by differentiating its product. As stated earlier Palm inc focuses on narrow market segments by differentiating its product from products made by its competitors such as Apple. Moreover it has diversified its customer base by going into B2B products as well. It has licensed its devices into various companies such as Hewlett Packard, Acer, Nokia, and Sony. This strategy is successful because of their good reputation, which carries with it a trade mark of innovativeness in the market. (Porter, 1980)